Analyst: Bitcoin’s Correlation with the S&P 500 Continues to Rise, with Financial Professionals Entering the Market as a Key Driver
Nov. 5 — CryptoQuant analyst Darkfost wrote that the correlation between Bitcoin and the S&P 500 has been steadily increasing over nearly the past decade.
The study uses a cumulative Z-score indicator with a 90-day rolling window to measure historical data since 2015 against the long-term trend. When the indicator rises above zero, it means Bitcoin’s correlation with U.S. stocks is higher than usual; when it falls below zero, it indicates weaker co-movement.
Data shows that Bitcoin’s 90-day rolling correlation with U.S. stocks recently peaked at 98.5%. Although it has since fallen to 6.3%, it remains above its historical average.
Meanwhile, the cumulative Z-score indicator has crossed above zero for the first time. This marks the first time in the past decade that Bitcoin has moved in tandem with the stock market for longer than it has diverged from it, signaling a strong trend.
As for the drivers, this structural shift is primarily due to a profound change in market participants. With the launch of spot ETFs and the appeal of convenient OTC channels offered by exchanges, Bitcoin is gradually being incorporated into traditional financial professionals’ portfolios as a mainstream investment instrument.
The report also noted that although the momentum behind the rising correlation has eased somewhat in the short term, the overall level remains high and continues to follow a gradual upward trajectory.
In summary, as institutional capital continues to flow in through ETFs and financial professionals place BTC and traditional stocks in the same risk-management basket, Bitcoin’s trading dynamics have become deeply tied to the broader equity market.
#BTC #标普500
Nov. 5 — CryptoQuant analyst Darkfost wrote that the correlation between Bitcoin and the S&P 500 has been steadily increasing over nearly the past decade.
The study uses a cumulative Z-score indicator with a 90-day rolling window to measure historical data since 2015 against the long-term trend. When the indicator rises above zero, it means Bitcoin’s correlation with U.S. stocks is higher than usual; when it falls below zero, it indicates weaker co-movement.
Data shows that Bitcoin’s 90-day rolling correlation with U.S. stocks recently peaked at 98.5%. Although it has since fallen to 6.3%, it remains above its historical average.
Meanwhile, the cumulative Z-score indicator has crossed above zero for the first time. This marks the first time in the past decade that Bitcoin has moved in tandem with the stock market for longer than it has diverged from it, signaling a strong trend.
As for the drivers, this structural shift is primarily due to a profound change in market participants. With the launch of spot ETFs and the appeal of convenient OTC channels offered by exchanges, Bitcoin is gradually being incorporated into traditional financial professionals’ portfolios as a mainstream investment instrument.
The report also noted that although the momentum behind the rising correlation has eased somewhat in the short term, the overall level remains high and continues to follow a gradual upward trajectory.
In summary, as institutional capital continues to flow in through ETFs and financial professionals place BTC and traditional stocks in the same risk-management basket, Bitcoin’s trading dynamics have become deeply tied to the broader equity market.
#BTC #标普500
